The suit, filed on February 18 in U.S. District Court in New Jersey, alleges that Stuttgart-based Daimler employed similar software tricks as its German rival Volkswagen to falsify emissions results on diesel engines to trick U.S. regulators.
Daimler shares plunged as much as 3.6 percent at their opening on Friday in Frankfurt and were currently trading down 2 percent at €63.18.
“It appears that Mercedes has been caught in a similar scheme as Volkswagen and programmed these BlueTEC vehicles to pollute, all the while reaping profits from those who have fallen victim to its aggressive and deceptive eco-conscious branding,” said Steve Berman, the managing partner of Hagens Berman, a class-action law firm.
Daimler, in a statement, said the allegations were unfounded.
Mr. Berman in 1998 was the special assistant district attorney who represented 13 U.S. states that eventually obtained $206 billion (€184 billion) from tobacco maker Philip Morris in the largest ever civil settlement. The case, which relied on testimony of whistleblowers, led to advertising and marketing restrictions on U.S. tobacco makers.
The lawsuit against Mercedes was filed five months after VW admitted it had manipulated emissions values with software and other technology on about 11 million diesel cars worldwide.
The scandal has thrown Volkswagen, Germany’s largest listed company, into an existential crisis and exposed the automaker to billions in potential fines, penalties and associated costs. The suit against Stuttgart-based Daimler, if borne out, threatens to further damages the reputation of German business and its low-emissions diesel technology, which it has used to remain competitive in Europe and abroad.
In Volkswagen’s so-called Dieselgate scandal, VW, Audi, Porsche, Seat and Skoda diesel cars have been identified that emit higher levels of nitrogen oxide than allowed during actual road tests. VW’s market value has plunged by more than €16 billion, or $17.8 billion, since the scandal emerged last September.
The lawsuit against Daimler alleges that Mercedes too is violating U.S. environmental regulations. The suit said that higher emissions levels than advertised were observed in the following Mercedes diesel models: ML 320, R320, S-Class, ML 350, E-Class, GLK Class, GL 320, GL Class, GLE Class, E320, ML Class, Sprinter, S350 and the R Class.
“Real world testing has recently revealed that these vehicles emit dangerous oxides of nitrogen (NOx) at a level more than 65 times higher than the United States Environmental Protection Agency permits,” the lawsuit alleged. “The Mercedes “Clean Diesel” turns out to be far from ‘clean,’” according to the lawsuit.
Daimler, headquartered in Stuttgart, was not immediately available to comment when contacted by Handelsblatt Global Edition on Friday morning. A Mercedes spokesman told French news agency AFP the allegations were unfounded and the automaker would defend itself.
U.S. law firm Hagens Berman filed the class action suit on behalf of Ulyana Lynevych, the owner of Mercedes ML 350 SUV.
A class action suit filed by Mr. Berman, the firm’s managing partner, prompted negotiations that led Toyota to eventually pay buyers $1.6 billion in 2013 for models that accelerated unintentionally.
In the Mercedes case, Mr. Berman is asking Daimler to start a recall or a free replacement program and offer compensation for the lost value of affected Mercedes cars.